US Durable Goods Orders Rise 0.9%
US Durable Goods Orders Rise 0.9%
new orders for U.S. manufactured durable goods increased by 0.9%, reaching $289.3 billion. This marks the second consecutive month of growth, following a revised 3.3% rise in January. The latest data surpassed economists’ expectations, who had anticipated a 1% decline for February.
Key Contributors to the Increase
Transportation Equipment: This sector led the overall growth, with orders rising by 1.1% to $97.1 billion.
Primary Metals and Appliances: Manufacturers in these categories expedited orders to avoid impending tariffs on foreign steel and aluminum, contributing to the overall increase.
Core Capital Goods Orders Decline
Despite the overall increase in durable goods orders, core capital goods orders—excluding aircraft and defense equipment—unexpectedly fell by 0.3% in February, following a revised 0.9% increase in January. Economists had forecasted a 0.2% rise.
Economic Implications
The rise in durable goods orders reflects manufacturers’ efforts to secure materials ahead of tariff implementations. However, the decline in core capital goods orders suggests potential hesitancy in business investment due to economic uncertainties. The mixed data indicates a complex economic landscape, with sectors responding differently to current policies and market conditions.
Conclusion
February’s durable goods orders report presents a nuanced view of the U.S. manufacturing sector. While overall orders have increased, the unexpected decline in core capital goods orders highlights underlying challenges. Businesses and policymakers will need to navigate these complexities carefully in the coming months.
